Business Report: Credit card debt on the rise - Hawaii News Now - KGMB and KHNL

Business Report: Credit card debt on the rise

(Image: Hawaii News Now) (Image: Hawaii News Now)
HONOLULU (HawaiiNewsNow) -

A Federal Reserve report says banks are giving credit cards to people with lower credit scores, something banks held back on from the 2008 market crash until recently. Now people with lower scores have got new cards, and their balances are higher than everybody else’s.

Now, there is a possible explanation that doesn’t portend trouble. Credit cards are increasingly offering rewards for spending, and people are switching their former cash spending to their cards to get the rewards. If that’s all that’s going on, and they pay their bills, this is actually good for the economy. But our collective credit card debt has risen by tens of billions of dollars just in the past few months.

Copyright 2016.  Hawaii News Now.  All Rights Reserved.

Powered by Frankly